MV Index Solutions GmbH (MVIS) has joined hands with Crypto Compare – a digital asset data firm – to launch a new index that will offer an hourly, updated bitcoin price in USD.
Crypto Compare Launches New BTC-Monitoring Tool
Traders and investors in the crypto space should know by now that bitcoin, while popular and significant, is among the most volatile assets around. Just yesterday, the currency rose to $10,100 after trading at $9,500 for a few days – only to come crashing down and lose nearly eight percent of its value in just a few short minutes. At the time of writing, no reason has been given for the sudden drop.
The new index will offer an updated price on bitcoin every hour to give traders and investors the latest data on the currency and where it is moving. SEBA Bank – a traditional financial institution in Switzerland that offers several crypto-trading products – was also heavily involved in the development of the index and has announced that it will use the new product to launch even further crypto-based tools for its customers to enjoy from the data it will provide.
Daniel Kuehne – head of asset management at SEBA – explained in a statement:
It is essential for derivatives on cryptocurrencies to have a representative reference rate which is robust against market distortions and manipulations. We are pleased to have contributed to the Crypto Compare bitcoin benchmark rate and to play a key role in helping the emerging derivatives market gain greater acceptance among professional and institutional investors.
The index will also offer reference rates for crypto-based companies, such as ETF managers and exchanges. Granted they are looking to introduce new bitcoin products they can do so using the information provided by the tool. The index will also post updated transaction costs for all major crypto trading platforms. This information – as with bitcoin’s price – is slated to be updated every hour.
Thomas Kettner – managing director of MVIS – expressed his enthusiasm over the new product, explaining:
We are pleased to launch this index, which is designed to provide a price for bitcoin which is hard to manipulate. The index follows our long-term mission in supporting new product developments with the aim of providing investors access to bitcoin data.
A New Price Every Hour
Positive words were also provided by Charles Hayter, the CEO and co-founder of Crypto Compare. Hayter stated:
We are excited to be leading the charge to bring greater transparency to the digital asset class by providing high-quality data and trusted indices. Working in partnership with MVIS, we are pleased to offer investors a premium tool to better measure the performance of their bitcoin exposure.
The index launched yesterday on June 3 and covers data for all the world’s major cryptocurrency exchanges including Coinbase, Gemini, Kraken, Bitstamp and itBit.
